StudentShare solutions
Triangle menu

Financial accounting - Essay Example

Nobody downloaded yet
Liquidity Analysis 12
Investment Analysis 13
Part B 15
Findings 15
Recent Developments 16
Recommendations 17
Part C 17
About IASB & FASB 17
Transitional Reliefs 18
Conclusion 19
References 20
Appendices 24
This project is divided into three parts. The first part includes the comparative analysis of the two UK-based companies- J Sainsbury Plc and Tesco Plc, based on the financial statements and other relevant information provided in the companies’ 2011 annual reports. This includes the ratio analysis and share price movements along with the FTSE 100 movements for the past four weeks. The second part includes the findings based on the financial analysis from the first part and the recommendations which follow from the findings as to which company has potential for better long-term investment. The third part of the project has the brief history of International Accounting Standards Board (IASB) and Financial Accounting Standards Board (FASB) and a list of transitional reliefs granted by the two boards for the retrospective application of a new revenue standard to ensure the comparability of revenues across all reporting periods.
Objectives of the Project
The objectives of this project are:
• To make a comparative analysis of Sainsbury and Tesco with the help of ratio analysis, share movements and related industry news
• To recommend which company would be better for long-term investment....
The analysis and interpretation is also helped by studying the business news related to the retailers’ industry. The four transitional reliefs related to the revenue recognition standard the IASB and FASB have granted in June 2011, are discussed. Part A Background of Sainsbury & Tesco John James Sainsbury and his wife founded Sainsbury in 1869 with only one retail store in London. Since then it has grown the largest retailer in UK with 934 stores consisting 377 convenience stores and 557 supermarkets. It has a joint ownership in Sainsbury Bank along with Lloyds Banking Group. The company also has 2 property joint ventures with The British Land Company Plc and Land Securities Group Plc. In the year 2010/11 Sainsbury grew by average growth rate of 8.5% in terms of space. It was the first retailer to open a bank in UK and the bank provides loans, credit cards, insurances and savings (J Sainsbury Plc, 2011). Sainsbury operates in 5 strategic areas driven 5 key values: Great food, general and merchandise clothing, complementary services and channels, new business development, and creating property value and growing space (J Sainsbury Plc-a, 2011). Tesco was founded by Jack Cohen in 1919 in London. The company has a vision to be highly valued by the community, customers, staff and shareholders and to become a modern innovative and growth company applying skills globally (Tesco Plc, 2011). The company has a seven part strategy to expand its business with sustainable long-term growth: Grow the core business in UK, be an outstanding online and store international retailer, become strong in other businesses besides food, grow retail services in all ...Show more
Cite this document
  • APA
  • MLA
(“Financial accounting Essay Example | Topics and Well Written Essays - 4000 words”, n.d.)
Retrieved from
(Financial Accounting Essay Example | Topics and Well Written Essays - 4000 Words)
“Financial Accounting Essay Example | Topics and Well Written Essays - 4000 Words”, n.d.
  • Cited: 0 times


Financial accounting 1
Contents 2
Introduction 4
Objectives of the Project 4
Scope of the Project 5
Part A 5
Background of Sainsbury & Tesco 5
Comparative Price Movements 6
Comparative Ratio Analysis 7
Profitability Analysis 8…
Financial accounting
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Financial accounting"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Financial Accounting
The research includes financial statement analysis of the company’s 2010 accounting period and 2011 accounting period. The financial statements indicate Tesco Plc fared financially well during the 2010 and 2011 accounting periods. Part 1 (a) Chief Executive’s Review Some of the contents of the chief executive officer’s report are useful.
8 pages (2000 words) Essay
60,000. Plant and Machinery Item 1: As per IAS 16, depreciation charge for the current year would be cost divided by the useful life. As such, the charge would amount to ?800,000/5=?160,000. Plant and Machinery Item 2: Assuming that the policy of depreciating plant and machinery for 5 years applies to all items of plant and machinery, the depreciation charge for the year in relation to this item would be ?
6 pages (1500 words) Essay
Financial accounting
FINANCIAL ACCOUNTING ESSAY Table of Contents Table of Contents 2 Introduction 3 Assets 3 Use of Technology and Revenue Generation 4 Asset Valuation 5 Source of Funds 6 Conclusion 7 References 8 Introduction Ford Motor Company is one of the leading automobile manufacturing companies of the world which was founded by Henry Ford in the year 1909 (Yahoo Finance, 2012).
5 pages (1250 words) Essay
In the final accounts, it is an expenditure that is deducted from the revenue. Deprecation shows the amount of decrease in the past worth of assets. Stakeholders can review this data and identify when to purchase substitute assets for the organization. For instance, an industry frequently replaces its manufacturing equipment at some time throughout its operations.
7 pages (1750 words) Essay
Financial Accounting
The increasing scale and internationalization of our sales and purchasing operations makes a significant contribution to our efficiency and profitability, as we progress towards our long-term goal of becoming a truly
4 pages (1000 words) Essay
Financial accounting
Hence it is not necessary for Foster’s to show that there is a current obligation in its financial statements. However due to the past events, it can be construed that there is a possibility of outflow of resources in the future. In this case,
2 pages (500 words) Essay
t and machinery for 5 years applies to all items of plant and machinery, the depreciation charge for the year in relation to this item would be £180,000/5=£36,000. Motor Vehicles: The depreciation charge for the new vehicle purchased would be £25,000 x 40% = £10,000. The
6 pages (1500 words) Essay
Financial accounting
Consequently, the financial information estimates provided to the investors will be biased on the current value of the firm and its
6 pages (1500 words) Essay
Financial accounting
Profitability ratios are used in the determination of a bottom line of a company and the returns it offers the investors. They basically show the overall performance and efficiency of a company. Ratios in this category are dived into
4 pages (1000 words) Essay
- Financial Accounting
See appendix 1 (Albrecht 2007, pp. 901). (a): when preparing the profit and loss account, the sales increase by £ 3,000 has been factored in. On a similar note, the quarterly payment of electricity cost and the reduction of the electricity by £
6 pages (1500 words) Essay
Comments (0)
Click to create a comment
Let us find you another Essay on topic Financial accounting for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us